When Spencer Alexander graduated from the University in 2004, he found little in-state construction management work. So, Alexander packed up his life and moved to Florida in search of a job. Alexander said many in his graduating class left the state because there wasn’t much construction work to do, other than commercial work. But just a few years after Alexander left, the job market in Louisiana exploded. According to the annual Louisiana Economic Outlook report, graduating seniors who plan to stay in Louisiana can expect more job opportunities than Alexander saw in 2004. The report is prepared by the E.J. Ourso College of Business. Loren Scott, professor emeritus of economics, has worked on the report for 26 years. “In general the market for graduating seniors is going to be good because they’re going to be coming out in a very tight labor market,” Scott said. The report projected that Louisiana will gain 37,200 jobs in 2008 and another 37,800 jobs in 2009. Scott said starting in 2006, fewer 19-year-olds were entering the labor market, and there was an outflow of baby boomers turning 60 and retiring. He said this trend accounts for serious labor market shortages. “Demographic changes in Louisiana’s population will create an intensifying labor market shortage over the rest of the decade, driving up wage rates, incentivizing older workers to stay in the workforce, and encouraging both more out-sourcing and more immigration,” the report stated. The report predicted that at the end of 2007, Louisiana will only be 3,400 jobs short of its pre-storm employment level. “There are huge opportunities in the construction sector especially along the southern area of Louisiana,” Scott said. “We have just an extra number of major construction projects going on that will cause the construction sector to be hot until 2012.” Scott said there are two main reasons for the increase in construction growth: private insurance and federal recovery money coming in to help rebuild homes after hurricanes Katrina and Rita and GOZONE legislation passed by Congress to provide significant tax incentives for bond money to build. Scott said recovery from the hurricanes has brought construction workers from outside of the state. “Contractors are so desperate for help that they’re going out of the country for people,” Scott said. Scott said in New Orleans and Baton Rouge alone, there are more than $20 billion in construction projects. He said that in the past, $2 billion worth of projects would have been impressive. Alexander is now a project builder in Austin,Texas. He said he would be willing to move back to Louisiana for work. “You have to go where the work is,” Alexander said. Scott said there is also a tremendous demand in the engineering and medical sectors. “Any aspect in health care is going to be huge,” Scott said. He said this job surplus is apparent across the country. Chase Crismon, biochemistry junior, said he wanted to enter the medical field before he knew there would be an increase in job openings in Louisiana. He said he would be open to working in Louisiana or going out-of-state. “It would just be easier to stay,” Crismon said. Crismon said he hopes to go to medical school. Scott said there are two factors involved when seniors are deciding whether to go to graduate school. He said while a higher level of education will help a worker advance in their job market, they will forego a year of income for every year spent in school.
—-Contact Emily Holden at [email protected]